14 | Sector Market Update: Softwood
SUMMARY
■ Demand in April and May was comparatively buoyant but stalled in June
■ National housebuilders saw fairly strong activity in the first half of the year
■Power costs have become excessive for those operating woodworking machinery as a customer service
■ The industry is pinning its hopes on pent up demand for new homes
SOFTWOOD DEMAND DISAPPOINTS
After a busy first five months, a slowdown in June caught the softwood sector off guard. Jerry Wilson reports
Above: Swedish sawlog prices remain firm while processed softwood levels have dropped TTJ | September/October 2025 |
www.ttjonline.com
As summer turned to autumn, weak demand continued to undermine the softwood market, leaving UK merchants and importers facing uncertain trading conditions. Demand had stalled abruptly in June after the comparatively buoyant months of April and May, and then continued on a downward trajectory through July and August. This change in fortune sent a wave of disappointment right along the supply chain, from the merchants back to the sawmills, denting confidence in the market and sending import prices into a downward spiral. The weakening prices were initially created by a few bulk sellers in a bid to reduce inventories to convert into cash, but then others followed suit, with prices of structural grades being hardest hit. As prices tumbled, merchants were positioned to make higher profits before their end-users started looking for reductions and shopping around for the cheapest deals. On a day-to-day basis, business proved to be patchy, with demand varying between one region and another. Before demand changed direction, national housebuilders saw fairly strong activity in the first half of the year, with increased completions compared to a year earlier. Some of the well-known names increased house completions during H1: Persimmon reported a 7% increase in private completions, while Taylor-Wimpey’s total completions grew by 11%. Four of the five major housebuilders declared optimistic projections in their annual and half-year reports, anticipating an increase in building activity of 5%-8% in H2 and
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